Sega Sammy struggles to reach pre-pandemic revenue in Q1

| By Marese O'Hagan
Pachinko and entertainment business Sega Sammy recorded JPY66.11bn (£409.1m/€485.9m) in sales in the first quarter of its 2022-23 financial year, up by 11.2% year-on-year, but still down 9% from pre-pandemic levels in 2019.

Entertainment made up JPY52.7bn of the total sales in the quarter ended 30 June, up by 11.1%.

This was followed by Pachislot and Pachinko machines at JPY10.5bn, up by 0.2% year-on-year. Resort revenue increased by JPY1.1bn to JPY2.6bn.

Other revenue increased by JPY100,000 to JPY300,000.

Revenue for the full year is forecasted to hit JPY375bn. This would be a 16.8% rise from 2021-22.

Cost of sales in the quarter totaled at JPY40.93bn, a rise of 15.7% year-on-year and 7.6% from the same period in 2019.

This meant that gross profit was JPY25.1bn, up just slightly by 4.6% year on year. However, this total was 11.3% less than Q1 2019.

Selling, general and administrative expenses also rose, from JPY20.2bn to JPY22.4bn. As a result, the operating income was JPY2.77bn, a decrease of 27.7%.

Non-operating income was JPY2.52bn, considerably higher than the JPY797m recorded the previous year. Non-operating expenses also rose though, increasing by 22.1% to JPY4.25bn.

Extraordinary losses of JPY149m left pre-tax income at JPY4.10bn. Following JPY942m worth of income tax, the total profit for the quarter was JPY3.16bn – 7.5% higher than in the previous year and 75.8% higher than in 2019.

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